Calls to reform online gambling tax laws

SA's peak welfare group says lax online gambling taxation laws have turned parts of Australia into virtual tax havens.

A welfare group wants changes to Australian online betting laws to ensure taxes are paid where the bets are laid.

The Northern Territory and Norfolk Island are potentially being used to legally avoid tax because of laws that tax companies in the jurisdiction where they are licensed, not where the bet is placed, the South Australian Council of Social Services says.

"When a gambling corporation does not have to be incorporated or resident in a jurisdiction, but can still use the licence of a jurisdiction like Norfolk Island to lessen their taxes, I think we have gone beyond real business and are talking about virtual tax havens and (legal) tax avoidance," chief executive Ross Womersley said.

"Because of the way the licence arrangements are made, South Australia is missing out on a whole lot of tax income."

Mr Womersley called for a national agreement on online gaming taxation based on where the gambling occurs, not where the company is licensed.

"Given that the gambling industry generates a high level of problems, major issues in our community, we think that it's absolutely important that the industry meets its social responsibilities in the form of taxation," he said.